High-Quality Financial Reporting and Sound Corporate Governance are Twin Pillars of Sustainable Growth: Nitin Gupta, Chairperson, NFRA
August 28, 2025
New Delhi, August 28, 2025:Addressing the FICCI conference, on 'Agile Governance: Fostering Transparency & Building Trust', Mr. Nitin Gupta, Chairperson of the National Financial Reporting Authority (NFRA), highlighted India’s remarkable journey of reforms, capital market expansion, and financial resilience, while stressing the critical importance of sound corporate governance and a globally comparable, high-quality financial reporting framework.
He noted that India’s transformation over the past decade has been powered by the digital revolution, tax reforms, a more competitive investment climate, and new laws aimed at simplification and efficiency. Emphasizing that India’s ambition to become a USD 30 trillion economy within the next two decades rests on trust, transparency, and governance, he outlined five key pillars of high-quality financial reporting: robust accounting and auditing standards, independent standard-setting institutions, strong quality controls within audit firms, professional accountancy bodies, and independent regulatory oversight.
Reflecting on past challenges such as the Twin Balance Sheet problem and major corporate failures, he underlined the urgency of building resilience through stronger financial oversight and governance, stating that “sound governance, transparent reporting, and investor trust are non-negotiable if India is to sustain growth and attract global capital.” Reaffirming NFRA’s commitment, Mr. Gupta stressed the adoption of risk-based audit approaches leveraging technology, greater transparency in audit committee disclosures, and alignment with global standards in accounting, auditing, and ESG/sustainability reporting. Concluding his address, he said, “India is on the threshold of an unprecedented economic transformation. It is our collective responsibility to ensure that governance and financial reporting frameworks evolve in step with this growth story.”
In his Special Address, Mr Rajesh Dangeti, Chief General Manager, Corporation Finance Department (CFD), Securities and Exchange Board of India, reinforced the governance theme, stating that minority shareholder protection remains central to the regulatory priorities. Most of SEBI's regulations, circulars and laws keep the perspective of the minority shareholders in focus, he said. He encouraged the corporate sector to keep a sharper lens on information and disclosure both in letter and in spirit.
Managing Director & CEO of Waaree Group, Pawan Agrawal, noted that agile governance represents a shift "from rule-based rigidity to principle-based flexibility," while maintaining accountability structures.
Sanjay Kukreja, Chair, FICCI PEVC Committee and Partner and CIO, ChrysCapital, observed significant improvements in board governance over three decades, with strategic discussions now standard practice compared to earlier family-led business models.
Abhishek Rara, Partner, Price Waterhouse LLP, said that rapid disruption across industries requires agile governance frameworks, citing research showing 40 per cent of chief executives believe their businesses will not survive the next decade without fundamental change.
The conference underscored regulators' determination to strengthen India's financial reporting ecosystem as the country positions itself as a global investment destination.